PNB Housing raises Rs 2,494 cr from rights issue for business growth

PNB Housing Finance promoted by Punjab National Bank (PNB) has raised Rs 2,494 crore from the rights issue to fund business growth.

The issue closed on April 27, 2023, PNB Housing Finance said in a statement.

The company intends to utilise the net proceeds from the issue towards augmenting its capital base.

Post the rights issue, the shareholding of PNB as a promoter of the company would come down from the current level of 32.53 per cent to below 30 per cent, but it would be higher than 26 per cent so that the bank retains promoter status.

In March 2022, PNB Housing's board approved the Rs 2,500-crore rights issuance, and in November last year, the board cleared the draft letter offer that was to be filed with the Sebi.

PNB Housing was looking to raise equity capital worth Rs 4,000 crore, and had entered into a deal with joint venture partner Carlyle Group, among other investors, in May 2021. However, in October 2021, the mortgage lender decided to terminate the Rs 4,000 crore stake sale citing delays due to pending legal proceedings.